The new stations are expected to be built with private sector help to ensure the future security of supplies and a balanced energy "mix" amid mounting global concern over long term oil and gas supplies.
"The government believes that nuclear power stations should have a role to play in this country's future energy mix alongside other low carbon sources," Business Secretary John Hutton told parliament, in a widely-expected statement.
"Set against the challenges of climate change and security of supply, the evidence in support of new nuclear power stations is compelling. We should positively embrace the opportunity of delivering this important part of our energy policy."
The pro-nuclear lobby has been pressing ministers for an early decision as most of the 19 reactors at Britain's 10 existing nuclear power stations, which produce about 20 percent of the country's electricity, will close by 2023.
Prime Minister Gordon Brown has endorsed his predecessor Tony Blair's support for kick-starting Britain's nuclear energy programme, against a backdrop of soaring oil prices, which last week hit 100 dollars a barrel.
Companies such as E.On, EDF, Centrica and RWE have all expressed an interest in involvement, with pledges that new plants could be up and running by 2018.
But opponents, with strong concerns over waste and safety, question whether atomic energy can help cut carbon emissions and want greater clarity on costs, plus assurances consumers will not have to pay for eventual decommissioning.
Greenpeace last year won a legal challenge after complaining the government's consultation process was flawed. The group said it was studying closely the re-ordered consultation and had not ruled out fresh action.
Executive director John Sauven said the government was peddling a "lie" that nuclear power would help meet targets to cut greenhouse gas emissions, calling for greater energy efficiency and cleaner use of fossil fuels.
"Ministers' own research found that even 10 new reactors would only cut the UK's carbon emissions by about four percent some time after 2025, and the so-called energy gap will open before new nuclear power stations can be built," Sauven said.
Friends of the Earth, Britain's third party -- the Liberal Democrats -- and the Green Party agreed, calling for a bolder policy with more reliance on sustainable or renewable energy, like wave and wind power.
One of the Green Party's principal speakers, Caroline Lucas, said Brown was guilty of "the most staggering failure of political vision."
"The reason that Germany has 300 times as much solar power and 10 times as much wind power than the UK is simply because German politicians, led by the Greens, have had the political will to lead the way," she added.
According to government figures, only five percent of Britain's electricity came from renewable sources in 2006.
Lobby group the Campaign for Nuclear Disarmament (CND) said a new nuclear build sent "the wrong message" internationally, given opposition to other countries building reactors because of fears they could create atomic weapons.
And Scotland's parliament, which controls planning but not energy policy, could provide another stumbling block as First Minister Alex Salmond has said there is "no chance" new plants would be built there.
But minister Hutton insisted the British government is taking the right decision.
"Giving the go ahead today that new nuclear power should play a role in providing the UK with clean, secure and affordable energy, is in our country's vital long term interest," he said.